Frequently Asked Questions about Observation Status Court Decision

April 9, 2020

On March 24, 2020, a federal court issued a decision in a nationwide class action, Alexander v. Azar, finding that certain Medicare beneficiaries who are admitted as “inpatients” and then changed to “observation status” at hospitals have the right to appeal to Medicare to challenge that status.

The Center has posted answers to frequently asked questions about the decision here, including why the issue is significant, who gained the right to appeal under the court’s decision, and who may wish to appeal once a process is established.

Note that we do not yet know when CMS will establish a process for appeals of observation status. Please check the Center for Medicare Advocacy’s website for further updates and sign up for our Alerts to receive news about significant developments in the case.